Gridlock Endangers Garvee Bonds
Please read this article:
D. C. Gridlock Imperils Garvees
Garvee bond ratings are at risk from the increasingly unpredictable budget and policy process in Washington, Standard & Poor’s warned in a report released Friday. The agency said it retained a stable outlook on all of the Garvees it rates, but in its report it said, “We believe there are several potential risks that if realized alone or in combination, might cause us to reevaluate the ratings on some or all of our Garvee bonds.”
Link to Proclamation and Ballot:
Quoting directly from the Ballot, “The bonds are further secured by the full faith and credit of the State of Arkansas, and to the extent “designated revenues” are insufficient to make timely payment of debt service on the bonds, the general revenues of the state shall be used to pay debt service on the bonds.”
We are on the hook for this money folks!